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Binhai Investment Co (HK:2886)
:2886

Binhai Investment Co (2886) AI Stock Analysis

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HK

Binhai Investment Co

(2886)

Rating:73Outperform
Price Target:
HK$1.00
â–¼(-15.25%Downside)
Binhai Investment Co's overall stock score is supported by strong valuation metrics, including a low P/E ratio and high dividend yield, which offset some of the pressures from financial performance challenges such as declining margins and high leverage. Technical indicators present a neutral outlook, not significantly impacting the score.

Binhai Investment Co (2886) vs. iShares MSCI Hong Kong ETF (EWH)

Binhai Investment Co Business Overview & Revenue Model

Company DescriptionBinhai Investment Company Limited, an investment holding company, engages in the construction of gas pipeline networks, provision of connection services, and sale of liquefied petroleum gas (LPG) and piped natural gas in Hong Kong. The company operates through Sales of Piped Natural Gas, Construction and Gas Pipeline Installation Service, Gas Passing through Service, and Sales of Bottled Natural Gas segments. It also sells piped and bottled natural gas through its pipeline networks to residential and industrial users. In addition, the company constructs gas pipelines, as well as offers construction and gas pipeline installation services to industrial and commercial customers, property developers, and property management companies. As of December 31, 2021, it had a gas pipeline network of approximately 3,574 kilometers. The company also engages in property development business. The company was founded in 1994 and is headquartered in Causeway Bay, Hong Kong.
How the Company Makes MoneyBinhai Investment Co makes money through several key revenue streams. The primary source of revenue is the distribution and sale of natural gas to different customer segments, including residential, industrial, and commercial users. The company earns income from the operation of its gas pipeline infrastructure, charging fees for the transportation and delivery of natural gas through its network. Additionally, Binhai Investment Co may engage in partnerships and collaborations with other energy companies and local governments to expand its service area and customer base, further enhancing its revenue potential. The company's strategic investments in the development of urban gas networks and related infrastructure projects are also crucial factors contributing to its earnings.

Binhai Investment Co Financial Statement Overview

Summary
Binhai Investment Co shows stable financial performance with consistent profitability, although there are pressures on revenue and margins. High leverage poses some risk, but the company maintains a solid equity base. Cash flow generation is strong, though slightly declining. Overall, the company is well-positioned but faces challenges in revenue growth and margin pressures.
Income Statement
67
Positive
Revenue growth has been inconsistent, with a decline of 3.26% in 2024 compared to 2023. Gross profit margin decreased from 11.69% to 9.18%, and net profit margin decreased from 4.01% to 3.22%. EBIT and EBITDA margins also experienced a decline. These metrics indicate some pressure on profitability, although the company remains consistently profitable.
Balance Sheet
72
Positive
The debt-to-equity ratio remained high at 1.50 in 2024, indicating significant leverage. Return on equity decreased slightly to 8.99%, reflecting reduced profitability. The equity ratio remained stable at 28.66%, suggesting adequate equity financing relative to assets.
Cash Flow
70
Positive
Free cash flow declined by 13.62% from 2023 to 2024, reflecting reduced cash generation. Operating cash flow to net income ratio improved to 2.98, indicating strong cash generation relative to profit. Free cash flow to net income ratio remained stable at 1.07, showing effective cash conversion from profits.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.20B6.41B6.10B4.84B3.65B
Gross Profit
569.48M748.98M727.32M855.44M603.41M
EBIT
416.45M500.33M487.98M587.67M535.20M
EBITDA
612.73M728.45M699.62M781.95M709.57M
Net Income Common Stockholders
199.78M256.61M325.83M399.66M354.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
385.00M935.40M845.25M742.18M589.77M
Total Assets
7.75B8.59B8.57B8.18B7.09B
Total Debt
3.34B3.92B3.93B3.15B2.38B
Net Debt
2.96B3.11B3.09B2.40B1.97B
Total Liabilities
5.45B6.27B6.28B5.86B5.10B
Stockholders Equity
2.22B2.23B2.22B2.25B1.94B
Cash FlowFree Cash Flow
213.21M246.87M-285.59M-224.78M-97.08M
Operating Cash Flow
594.99M832.38M350.25M486.15M772.30M
Investing Cash Flow
-213.40M-586.86M-802.42M-613.39M-972.35M
Financing Cash Flow
-780.61M-252.55M617.13M444.82M-113.41M

Binhai Investment Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.18
Price Trends
50DMA
1.03
Positive
100DMA
1.05
Negative
200DMA
1.02
Positive
Market Momentum
MACD
0.01
Negative
RSI
49.40
Neutral
STOCH
53.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2886, the sentiment is Neutral. The current price of 1.18 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 1.03, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 53.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2886.

Binhai Investment Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$1.05B5.1517.44%7.11%13.91%-23.60%
73
Outperform
HK$1.44B7.138.97%7.31%-3.26%-22.44%
72
Outperform
HK$40.64B12.945.56%4.02%-5.40%8.76%
70
Neutral
HK$13.54B8.276.93%4.88%7.42%-2.02%
61
Neutral
$919.11M5.922.43%4.36%10.27%-74.96%
60
Neutral
HK$2.97B8.975.13%5.25%-1.30%-38.13%
59
Neutral
$46.84B11.469.94%6.78%1.39%-21.74%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2886
Binhai Investment Co
1.04
-0.10
-8.77%
HK:1600
Tian Lun Gas Holdings Limited
3.02
-0.31
-9.31%
HK:9908
JiaXing Gas Group Co. Ltd. Class H
7.60
0.30
4.11%
HK:1193
China Resources Gas Group
20.65
-6.18
-23.02%
HK:0384
China Gas Holdings
7.46
0.83
12.55%
HK:1083
Towngas China Co
3.89
1.30
49.96%

Binhai Investment Co Corporate Events

Binhai Investment Announces Redemption of Preference Shares
Jun 19, 2025

Binhai Investment Company Limited has announced the redemption of 480,650 redeemable preference shares held by TEDA Hong Kong Property Company Limited at a par value of HK$50 each, amounting to HK$24,032,500. This decision follows the fulfillment of specific conditions outlined in the company’s Bye-laws and is not expected to adversely impact the company’s financial position.

Binhai Investment Announces Board Changes
Jun 19, 2025

Binhai Investment Company Limited, a firm incorporated in Bermuda, announced a change in its board of directors. Mr. Yu Ke Xiang has resigned as a non-executive director due to a change in job duties, and Mr. Xia Bin Hui has been appointed to the position effective June 19, 2025. Mr. Xia brings extensive experience in corporate operation management and special assets investment, having held significant roles in various financial and asset management companies. His appointment is expected to strengthen the company’s strategic direction and operational management.

Binhai Investment Announces Board and Committee Structure
Jun 19, 2025

Binhai Investment Company Limited has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The company has also established four key committees: Audit, Remuneration, Nomination, and Risk, each with designated chairpersons and members. This structured governance approach is likely to enhance the company’s operational oversight and strategic decision-making, potentially strengthening its position within its industry.

Binhai Investment’s Resolution Approved at Special General Meeting
May 9, 2025

Binhai Investment Company Limited announced that the ordinary resolution proposed at their Special General Meeting (SGM) on May 9, 2025, was successfully passed by independent shareholders. The resolution involved approving the Construction Works Agreement, the Transactions, and the Annual Caps. With a total of 466,393,327 votes in favor and none against, the resolution was adopted, allowing the company to proceed with the necessary actions to implement the agreement and transactions. This approval signifies a positive step for Binhai Investment in executing its strategic plans, potentially enhancing its operational capabilities and market position.

Binhai Investment Co. AGM Resolutions Approved
May 9, 2025

Binhai Investment Co. announced that all resolutions proposed at their Annual General Meeting on May 9, 2025, were approved by shareholders. The resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend to be paid on June 10, 2025, and the re-election of several directors. The company also re-appointed Deloitte Touche Tohmatsu as auditor for the upcoming year. These approvals reflect strong shareholder support and are expected to positively impact the company’s governance and financial management.

Binhai Investment Schedules Special Meeting for Construction Agreement Approval
Apr 14, 2025

Binhai Investment Company Limited has announced a special general meeting to be held on May 9, 2025, in Hong Kong to discuss and potentially approve a Construction Works Agreement and related transactions. The approval of the agreement and its annual caps would authorize the company’s directors to execute necessary documents and actions, potentially impacting the company’s operational capabilities and strategic positioning.

Binhai Investment Announces Special General Meeting and Register Closure
Apr 14, 2025

Binhai Investment Company Limited has announced the closure of its register of members from 6 May 2025 to 9 May 2025 to determine shareholders eligible to vote at a special general meeting on 9 May 2025. This meeting will consider the approval of the Construction Works Agreement with Tianjin Water Engineering Group Limited, which could impact the company’s operational activities and stakeholder interests.

Binhai Investment Announces Annual General Meeting and Share Issuance Plans
Apr 7, 2025

Binhai Investment Company Limited has announced its upcoming annual general meeting scheduled for May 9, 2025, in Hong Kong. Key agenda items include the consideration of the audited financial statements for the year ending December 31, 2024, approval of a final dividend, re-election of several directors, and re-appointment of Deloitte Touche Tohmatsu as the auditor. Additionally, the meeting will address resolutions related to the issuance of new shares, allowing the directors to allot and issue additional ordinary shares up to 20% of the current issued shares.

Binhai Investment Launches Gas Supply for Qinhuangdao Northern Glass Project
Mar 26, 2025

Binhai Investment Company Limited has announced the official commencement of gas supply operations for the Qinhuangdao Northern Glass Project, a joint venture with Qinhuangdao Taixing Gas Company Limited. This project, which involves supplying natural gas to Qinhuangdao Northern Glass Co., Ltd., is expected to significantly increase Taixing Company’s gas sales volume and enhance its operating profit. The initiative aligns with Binhai Investment’s strategy to leverage its resource allocation advantages and expand its footprint in the natural gas market in North China, ensuring stable investment returns and market growth.

Binhai Investment Partners with Deqing County for Green Energy Development
Mar 23, 2025

Binhai Investment Co., Ltd. has entered into a strategic cooperation agreement with the Deqing County Government in Zhejiang Province, China, to deepen their collaboration in urban gas and integrated energy utilization. The partnership aims to promote green and low-carbon development in Deqing County by focusing on renewable energy projects, energy efficiency in public buildings, and the development of smart low-carbon industrial parks. Key projects include the relocation of the Deqing branch line of the Huhang Pipeline to improve natural gas supply safety and efficiency, and the implementation of renewable energy projects such as solar and hydrogen energy. This collaboration is expected to enhance regional energy transmission capacity, reduce costs, and support industrial growth in the region.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.